Eurozone inflation jumped to 3.8% in September, the highest level in three years, as the war in the Middle East fueled a surge in energy costs, official data showed Friday. The figure for the 21-country euro area was up sharply from 3.2% in August and remains well above the European Central Bank's 2% target, raising the likelihood of another interest rate increase. The September reading published by the statistical office of the European Union was slightly higher than the 3.7% forecast by economists for Bloomberg. "Ouch," wrote ING chief economist Bert Colijn in a note. "While it's still mainly driven by energy prices, broader inflationary pressures are mounting as energy prices are expected to stay elevated.
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